THE PESO strengthened on Thursday as the dollar fell before the release of US retail sales data overnight.
The local unit closed at P55.746 per dollar on Thursday, strengthening by 10.9 centavos from its P55.855 finish on Wednesday, Bankers Association of the Philippines data showed.
The peso opened Thursday’s session slightly up at P55.80 against the dollar. Its worst showing was at P55.84, while its intraday best was at P55.71 versus the greenback.
Dollars traded went down to $1.87 billion on Thursday from $1.92 billion on Wednesday.
“The peso appreciated in anticipation of a likely contraction in US retail sales for April,” a trader said in an e-mail.
The dollar was also dragged by lower global crude oil prices on Thursday, as well as a surge in the major Asian currencies, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
For Friday, the trader expects the peso to move between P55.60 and P55.85 per dollar, while Mr. Ricafort sees it ranging from P55.65 to P55.85.
The US dollar lost its footing against major peers on Thursday ahead of retail sales later in the day that could offer clues on US consumer strength in the face of tariff risks, while excitement over a Sino-US trade deal faded, Reuters reported.
The greenback has given up most of its gains from Monday after the United States and China announced a 90-day pause on most of the tariffs imposed on each other’s goods since early April, easing fears of a global recession.
Safe-haven currencies gained, with the Japanese yen strengthening 0.6% to 145.88 per dollar after having touched a one-month low of 148.65 earlier this week. The Swiss franc firmed 0.6% to 0.8376 versus the dollar.
The euro tacked on 0.2% to $1.12.
Most Asian currencies advanced versus the dollar too, led by a surge in the South Korean won for the second day after news on Wednesday that officials from South Korea and the US met last week to discuss the dollar/won exchange rate led to a bout of dollar selling.
The won surged 0.7% at 1,397.68 per dollar. The sudden lurch in the won was reminiscent of an unprecedented two-day surge in Taiwan’s currency at the start of May, which also coincided with the end of US-Taiwan trade talks in Washington.
The Taiwan dollar was 0.5% stronger to the dollar on Thursday.
A Bloomberg report on Wednesday, however, said the US is not negotiating for a weaker dollar as part of tariff talks, which has helped calm some of the nervousness in the markets.
The dollar index, which measures the US unit against six other currencies, was 0.2% lower at 100.81, but on course to eke out a 0.4% gain for the week. Even so, the index is down nearly 7% in 2025.
US President Donald J. Trump’s aggressive and erratic trade policies have rattled investors’ confidence in the dollar, leading to a sharp fall in US assets. While stock markets have recouped April losses, the dollar remains under pressure.
A major market focus on Thursday will be US retail sales data, and investors are also going to be looking out for more details on possible trade deals after the US-China tariff truce. — A.M.C. Sy with Reuters
